Bitcoin (BTC) made a big move to the downside after we last talked about it on Friday but in the days that followed it has practically traded sideways. However, now it has run into a key trend line resistance and is once again on the verge of a sharp decline. The last time this happened, we saw the price decline massively and if the same happens again then we are looking at BTC/USD declining towards the bottom of the descending triangle that we see on the daily chart. This is a bearish development for the overall market but it is in line with what is happening in other markets.
If we take a look at what is happening in the EUR/USD forex pair, we can see consistent rejections at the 50 day EMA. This has been happening for a while now and EUR/USD has failed to break past the 50 day EMA. All of this points to the strong probability of a sharp decline in this pair followed by a similar decline in BTC/USD in the near future because movements in this pair directly affect movements in Bitcoin (BTC). A quick glance at ETH/USD tells us that the Ethereum (ETH) and the rest of the altcoin market share the same outlook despite temporary bullishness. The pair has done pretty much nothing except for making big moves to then invalidate those moves. This has given traders better entry points to short sell this pair.
The daily chart for the S&P 500 (SPX) shows us that the entire time what the index has been doing is just delaying the inevitable. We have now seen a close above the 50 week EMA on the S&P 500 (SPX) but that hardly changes anything. Trend line resistance on the daily chart shows us that the index does not have much room to rally and it is only a matter of time before it begins its downtrend. We have the LTC/USD chart pointing to the same outlook. The manner of its rise and fall is quite symmetrical and it is easy to see what might follow next which is why traders that are trying to buy cryptocurrencies at this point need to exercise extreme caution.